RISK MANAGEMENT NEWS

September 2019

Prometeia has launched a thoroughly redesigned software solution for FTP & Margin Analysis within the Performance Management & Control functionalities of ERMAS, the company’s flagship Enterprise Risk Management Suite, granting even more effective user experience and support to real-time pricing processes.

The specific module for Product-based FTP calculation has been enhanced, enabling calculation of prospective FTPs for standard products, defined in terms of financial structure and commercial attributes.

Once market rates and other dynamic variables are captured, this functionality can endow the commercial network with a live catalogue of product prices, effectively supporting the sales process.

Product-based FTP can be performed at a high frequency to provide up-to-date information that is easily distributed through internet /intranet channels using Prometeia’s dashboard reporting tool, or any other visualization layer chosen by the organization.

In addition, to support real-time pricing processes, Prometeia has developed a highly innovative, web-based module, the FTP Online Simulator, fully integrated with the other FTP modules of the suite.

The web-application allows the front-office users to simulate, in a matter of seconds, the FTP rates for a standard or special product, using different market dates simultaneously, enabling the comparison of results for each FTP component.

A user-friendly interface enables users to easily:

design the characteristics of the product from scratch or choose one from the existing catalogue and modify the related features;

define the FTP components and the related calculation rules from a large variety of user-selected methods and yield curves models, according to industry best practices or leveraging the equation editor to set specific calculation functions;

set-up the simulations by choosing the analysis and market dates.

Among all simulations, the user can flag as golden data the results to be stored for future use, applying this selected pricing when the deal is actually booked in the origination system.

The application includes different profiles, to accommodate use by the various business units of the bank (Treasury, ALM, Corporate Department, etc.), with different user roles and capabilities.